Standard Business mile deduction rate is $.56 for 2021
Business mile deduction rate for 2021 is .56, down 1.5 cents from the rate for 2020.
A few simple tricks will make keeping track of your business miles a snap.
Count your deposit slips they show your parents income, date and check number (need to have anyway) and you will have the miles to the bank for the year.
(number of miles both ways times the number of times you went to make DC income deposits.)
In order to take the mileage to the store the main reason for going to the store or more than half the receipt was for daycare than you would claim the mileage both ways to and from the store. If the main reason for the trip was for daycare than you would claim the mileage(out of formula), if not the trip is personal.
After you make this determination write on the back of the receipt business or personal, put the receipts in a brown envelope (brown to help the receipt from fading)for that particular store, at the end of the year you can add up the number of times you went to that store for business and multiply the miles to and from the store by the times you went for business.
Don’t forget field trip miles, and bringing the kids to school.
You must also have the total miles you drove the car for that year, tabs and don’t forget the interest for the year from your car loan. You will have to call the bank to get this information as they do not mail it to you any more.
If you wish to depreciate the vehicle, you will also have to keep track of gas, maintenance and insurance. The value of the vehicle as of the date you put it in service for the business. I would also suggest keeping a separate envelope with your spouses receipts for their vehicle, I wouldn’t worry about adding them up, just to have in case of audit to prove that you did not use all the receipts for both cars.